NAPSLO BLOG

B&D Reviews Impact of CFPA on Industry

2009-07-03T08:18:00.001-05:00

NAPSLO's Washington D.C. representative has reviewed the proposed Consumer Financial Protection Agency (CFPC) Act of 2009 , and based on its analysis, if passed, would have the following impact on the insurance industry:

The business of insurance is specifically excluded from the CFPC’s authority to regulate consumer financial products or services under the Act.
Entities engaged in the business of insurance would not be subject to the Agency's reporting requirements for "nondepository” entities.
The authority over consumer financial protection currently vested in the state insurance regulators will d not transferred to the CFPC.
The Act recognizes the authority of state insurance regulators' over insurance products and Annuities which is to be separate and apart from the Agency's authority.

NAPSLO Applauds Senate for Introducing the Surplus Lines & Reinsurance Bill

2009-06-24T14:47:00.006-05:00

NAPSLO officials applaud Senators Evan Bayh (D-Ind.), Mel Martinez (R-Fla.) for introducing, and Senators Bill Nelson (D-Fla) and Mike Crapo (R-Id) for cosponsoring, the Nonadmitted and Reinsurance Reform Act of 2009 in the Senate. The bill, which was also recently introduced in the House of Representatives, was introduced in the Senate on Thursday.

“We are pleased to see Senators Bayh and Martinez taking the lead on the surplus lines bill and look forward to Senate consideration of this needed piece of insurance reform legislation,” said NAPSLO President John Wood. “This bill would help consumers by making property/liability insurance more readily available and improving the efficiency of the surplus lines insurance market.”

The NRRA (HR 2571 in the House and S 1363 in the Senate), is aimed at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform regulatory system, while preserving the role of the state regulator.

“This bill would simplify the tax remittance and compliance responsibilities surplus lines brokers must discharge and bring efficiency and cost reduction of regulatory compliance in placements with multi-state exposures,” said NAPSLO Executive Director Richard Bouhan. “Such reform would benefit not only the brokers and underwriters who provide surplus lines insurance but also consumers who ultimately pay the price for the inefficiencies.”

In May, Representatives Dennis Moore (D-Kan.) and Scott Garrett (R-NJ), introduced H.R. 2571 in the House. The House passed similar versions of the bill in the last two sessions of Congress and the Senate took up a similar bill in 2007 but it took no action prior to the end of the 110th Congress, requiring that the bill be reintroduced in the 111th Congress. NAPSLO has been informed that H.R. 2571 will be passed under suspension in the House in early July. NAPSLO officials said they are hoping to see action take place soon on the surplus line reforms and believe there will be wide support for the legislation, noting that NAPSLO and other industry organizations have worked together in advocating enactment of this type of legislation.

“With the introduction of the bill in both the House and Senate, and wide support from the industry, we believe that this bill will be approved and signed into law,” said Maria Berthoud, Partner, B&D Consulting. “Financial services reform is currently front and center in Washington which gives us an excellent opportunity to have this bill included and passed in any larger reform measure.”

In addition to congressional action, insurance regulatory reforms are also under review by the White House. In early June NAPSLO was among a select group of insurance trade associations attending a Listening Discussion with White House officials on regulation of the financial industry Ms. Berthoud and other industry representatives met with Diana Farrell, Deputy Director of the National Economic Council and Deputy Assistant to the President, and Michael Barr, Assistant Secretary for Financial Institutions at the Department of Treasury. On June 26, NAPSLO will attend another White House meeting to discuss how this surplus lines fits into the Administration’s regulatory reform plans.

Montana CSI to assume stamping office functions

2009-06-24T09:39:00.004-05:00

Effective July 1, 2009 the Montana Commissioner of Securities and Insurance will review and process surplus lines insurance submissions, determine applicable stamping fees owed, and send surplus lines agents tax and fee statements.

All of these functions were previously performed by the Montana Surplus Lines Agents Association (MSLAA).

In a letter to surplus lines agents, the department said the "decision to bring these functions under the direct control of the CSI from the MSLAA was a difficult process and was brought about by many factors, including the uncertainty of the surplus lines insurance market and proposed federal legislation."

In addition, the CSI noted that it had revised the surplus lines submission/endorsement forms for all surplus lines transactions reported after July 1, 2009. The updated surplus lines forms can be obtained at http://csi.mt.gov. In the near future, the CSI said it would implement an electronic filing system for surplus lines submissions.

Reinsurance Courses Available to NAPSLO Members at a Discount

2009-06-22T13:39:00.001-05:00

Two upcoming Reinsurance Association of America programs, The Art of Designing Reinsurance Contracts and Programs and ReUnderwriting: An Educational Forum for Underwriting Professionals, are available to NAPSLO members at a discounted rate.

The Art of Designing Reinsurance Contracts and Programs is set for July 14-17 in New York City and will be a four-day seminar for professionals who need an in-depth treatment of reinsurance contracts. The program will focus on:

Design property and casualty reinsurance contracts from the perspective of the insurer, reinsurer, and intermediary;
Learn the impact of different contract clauses;
Structure a contract to avoid gaps in coverage;
Determine risk transfer and its implications on the financial statement;
Experience the consequences of line decisions by playing Gen Re's PRIME game, a simulated management exercise.

The course is designed for Underwriters, contract writers, claims and accounting professionals, attorneys specializing in reinsurance, intermediaries, regulatory staff, and insurance company professionals. The 2008 program was awarded 28.5 CLE credits (can vary depending on state), including one credit hour for ethics. CPCU, CPD and CPA, CPE credits are also awarded. Hotel Accommodations are just $200 per night at the New York Helmsley Hotel.

You can review the Agenda, Brochure, and Register online. NAPSLO members qualify for the Association Partner registration rate.

The second program, ReUnderwriting: An Educational Forum for Underwriting Professionals is set for July 30 in New York City and will be a one-day program focusing on relevant topics and concerns to (re)insurance underwriting professionals.

A reinsurance buyer's perspective about the drivers of a company's decision to purchase reinsurance;
Practical hands-on session to enhance business practices, including an underwriting workshop to analyze and take active steps to improve a company's net results;
Challenges facing underwriters and actuaries in the dynamic insurance and reinsurance market;
V.J. Dowling's perspective on market trends;
Panel discussion on underwriting hot topics.

The program is for mid-to-senior level underwriters, chief underwriting officers, brokers, actuaries, claims professionals, attorneys, and other professionals from the reinsurance and primary insurance sectors.

Hotel Accommodations are available at $200 per night at the New York Helmsley Hotel and the 2007 program awarded 6 CLE credits. CPCU, CPD and CPA, CPE credits are also awarded.

You can review the Agenda, Brochure, and Register online.

NAPSLO encouraged by proposed financial services reforms

2009-06-18T23:20:00.000-05:00

Representatives of NAPSLO are encouraged that the initial draft of the financial services reform package outlined by the Treasury Department proposes the continued use of state regulation of the insurance industry.

The Treasury Department proposal is consistent with the outline of regulatory reform NAPSLO presented to the administration after it, along with other national groups, met with representatives of the White House and Treasury Department officials earlier this month.

"During our discussions, the Treasury asked for additional information on surplus lines and how it is regulated and NAPSLO’s views toward financial services regulation reform. We submitted the information and we are delighted that the report is in line with the views we presented, particularly in regard to insurance regulation,” said Maria Berthoud, NAPSLO's Washington Representative with B & D Consulting.

"We believe state regulation offers consumers better protections and stronger regulation and are encouraged that the Treasury Department proposal incorporates the continuation of state insurance regulation,” stated NAPSLO President John Wood. “We agree that adding enhancements to state regulation is the best approach and are pleased that the Treasury took into consideration our recent comments," Wood added.

"While the structure of the regulation of the financial services industry will be altered under the Treasury proposal, insurance regulation will remain the responsibility of the states, as it is now," Richard Bouhan Executive Director of NAPSLO stated. "We are further encouraged that with the report’s emphasis on regulatory reform, the passage of HR 2571 ---- the Nonadmitted and Reinsurance Reform Act (NRRA) ---- is even more critical. When enacted, the NRRA will facilitate the efficient placement and taxation of surplus lines insurance and would work well with the Treasury Department’s proposals,” Mr. Bouhan added.

Director Candidate Suggestions Sought

2009-06-17T15:44:00.000-05:00

Director candidate nominations are now being accepted by the NAPSLO Nominating Committee in order to assist the Committee in developing the slate of directors to be presented for a vote at the next Annual Business Meeting to be held in conjunction with the 2009 NAPSLO Annual Convention in Orlando, Florida on October 9, 2009.

NAPSLO members must submit the candidate names for consideration as director nominees no later than August 26, 2009, but members are encouraged to submit such names as soon as possible. Suggested candidate names may be submitted to the committee, in writing, by e-mail at nominations@napslo.org; by postal mail to the NAPSLO office; or directly to members of the Nominating Committee.

The Nominating Committee is chaired by former Past President Bill Newton of RPS Los Angeles (Lemac & Assoc.) and members of the committee are: Dave Leonard, RSUI Group; Hank Haldeman, The Sullivan Group; Tim Makowski, Specialty Lines Underwriters, and Steve Vaccaro, MAX Specialty Insurance Co.

As required by the Association's Bylaws, the Nominating Committee will prepare slates of nominees and submit them to the NAPSLO membership at least 30 days prior to the Annual Business Meeting.

Members will vote at the Annual Business Meeting on the slate of five directors, who serve three year terms.
Characteristics the Nominating Committee considers in candidates include: integrity; personal character; willingness and ability to devote considerable time to the Association; ability to serve three to 10 years on the Board; a history of service to the industry, including NAPSLO committee work, involvement in state associations, active involvement in NAPSLO meetings or the NAPSLO schools; performing a leadership role in their own organization; and demonstrated leadership in the industry.

Convention Registration Now Open!

2009-06-15T11:40:00.000-05:00

Registration for the 2009 NAPSLO Annual Convention is now open and members can register online for the meeting, set for October 7-10 at the Orlando World Center Marriott, by using the Registration link on the Convention webpage at http://annual.napslo.org. You will need your firm's Member ID for your office to register.

Please note the following items regarding the convention:

Hotel rooms are available at the Orlando World Center Marriott ($225) and Caribe Royale Orlando ($154). NAPSLO will provide transportation between the hotels during convention hours.
A large block of rooms is available on Tuesday for early arrivals.
Complimentary wireless internet access will be available in the Brokers’ Lounge.
Dr. Robert P. Hartwig, CPCU, president of the Insurance Information Institute, will present the Derek Hughes/NAPSLO Educational Foundation Lecture Series.
A panel of company and broker members will review the current landscape in our industry.
A panel pitting Generation X and Baby Boomers will review industry and workplace expectations and attitudes during a “Family Feud” type of program.
NAPSLO will offer a Friday night activity for attendees under 40.

Webinar on E&S Market Available to View

2009-06-12T09:34:00.000-05:00

A replay of the June 11 A.M. Best webinar organized by NAPSLO on the Pricing and Availability in the Excess & Surplus Lines market is now available to view on the A.M. Best website. More than 1,000 people signed up to view the webcast live.

Participants in the one-hour discussion were:

Paul Springman, President and COO, Markel Corp.
Marla Donovan, Vice President, Burns & Wilcox
Kevin Westrope, President and CEO, Westrope
Richard Kerr, Chairman and CEO, MarketScout Corporation
Duncan McColl and Lee McDonald, A.M. Best Company

The panel examined today's market, including pricing and availability, for specialty insurance, and changes in the financial strength of the specialty insurance sector of the property/casualty industry.

Florida Governor Signs HB 853, Provides Remedy to Zota Ruling

2009-06-11T17:28:00.000-05:00

Florida Gov. Charlie Crist today signed into law HB 853, which clarifies the surplus lines industry's status regarding forms and policy regulation that was challenged by the Florida Supreme Court’s ruling in 2008 in the Essex v. Zota opinion.

The Florida House of Representatives and Senate unanimously passed the legislation in May and sent the bill to the governor. On Wednesday representatives of the surplus lines industry met with the Governor to explain the importance of the legislation to Florida consumers and encouraged him to sign the bill.

The bill restores the industry's exemption from regulation of surplus lines forms and policies that was put into question by the court ruling which said that surplus lines was only exempt from the rating section of Chapter 627 of Florida’s statute (Insurance Rates and Contracts) but was subject to the chapter’s other provisions.

The new law affirms the industry's regulatory exemption retroactive to Oct. 1, 1988, the date the Florida Supreme Court’s decision ruled previous legislation initiated the exemption of rate, but not form regulation.

“We are pleased to see that the Governor signed the bill," said NAPSLO Executive Director Richard Bouhan. "This is was an important victory for the industry and for the Working Group that had drafted and steered the legislation to unanimous approvals in the Florida House and Senate."

Dale Pilkington Steps Down from NAPSLO Board

2009-06-09T11:00:00.001-05:00

Dale Pilkington recently stepped down from the NAPSLO Board of Directors and as Vice President. Mr. Pilkington is not currently affiliated with a NAPSLO member firm and based on NAPSLO Bylaws he tendered his resignation from the Board and as Vice President.

Mr. Pilkington also served as Convention Chair and Secretary Marshall Kath will now handle the duties as Convention Chair for the 2009 NAPSLO Annual Convention in Orlando.

“I would like to thank Dale for all of his work on the Convention Committee, his past service on the NAPSLO Board, his visionary leadership, and his contributions to the NAPSLO membership,” said President John Wood.

NAPSLO Takes Part in White House Discussions on Financial Regulation

2009-06-05T18:52:00.000-05:00

NAPSLO was among a select group of insurance trade associations attending a Listening Discussion on Thursday with White House officials on regulation of the financial industry.

NAPSLO's Washington Representative, Maria Berthoud of B&D Consulting, and other industry representatives met with Diana Farrell, Deputy Director of the National Economic Council and Deputy Assistant to the President, and Michael Barr, Assistant Secretary for Financial Institutions at the Department of Treasury.

Other groups attending included the PCI, IIABA, AIA, ACLI, CIAB, NAMIC, NAIC, NAIFA and the Financial Roundtable.

"These are significant discussions on the future of financial services regulation and it is important that NAPSLO is able to explain the role of surplus lines insurance," said NAPSLO President John Wood.

NAPSLO has been asked by Administration officials for detailed positions on federal regulation and information on the surplus lines industry and is in the process of submitting the information.

Based on discussion from Thursday, the Obama Administration is committed to setting up a systemic risk regulator that would cover any entities that are determined to be too big to fail. The biggest unresolved issue is whether the systemic risk regulator authority is given to the Federal Reserve, or if a Council is established.

The other key tenet of the Administrations proposal will deal with consumer protections. They are considering developing a super regulator for Consumer Protections, or giving all current principal regulators an enhanced office of consumer protection.

There was spirited discussion regarding if insurance should be included in a federal charter, or if states could continue their supervisory role. NAPSLO urged for Federal Standards to be examined such as the NonAdmitted Reinsurance Reform Act of 2009 (HR 2571), and NARAB as ways to help the inefficiencies of state regulation without losing a high level of consumer protection. The NRRA was recently introduced in the House of Representatives and a number of other bills are under consideration.

NAPSLO invited to attend White House Listening Discussion on Financial Regulation

2009-06-02T20:27:00.000-05:00

NAPSLO is among a select group of insurance trade associations invited to attend a Listening Discussion on Thursday with White House officials.

The representatives are scheduled to meet with Diana Farrell, Deputy Director of the National Economic Council and Deputy Assistant to the President, and Michael Barr, Assistant Secretary for Financial Institutions at the Department of Treasury, for a small group discussion on regulatory reform issues. Maria Berthoud of B&D Consulting, NAPSLO's Washington Representative, will represent NAPSLO at the meeting.

The NonAdmitted Reinsurance Reform Act of 2009 (HR 2571) was recently introduced in the House of Representatives and a number of other bills are under consideration. The Obama administration is looking at options to overhaul the regulatory system.

NAPSLO Survey Finds Specialty Lines Capacity Unchanged and Submissions Up in 2009

2009-05-28T08:51:00.000-05:00

Despite an economic slowdown, the majority of wholesale brokers and E&S carriers are not seeing a decline in capacity or a tightening of terms along specialty lines, but are seeing an increase in submission activity, according to the results of a recent survey of members of NAPSLO.

The survey, which was conducted in mid-May 2009, compared results of the first quarter in 2009 to the same period of 2008.

“NAPSLO members confirmed that pricing, capacity and terms in specialty lines remain relatively flat, but recognized that a major catastrophic event or changes in the economy could have a significant impact on capacity,” said John Wood, NAPSLO president. “During these uncertain times, wholesale brokers and surplus lines carriers remain strong with ample capacity to meet specialty lines needs in any market cycle.”

Nearly half of the respondents to the survey said that they were not seeing a change in the availability of specialty insurance coverage; 38% said they were seeing an increase in coverage availability and only 12% said they were seeing a decline in availability.

Regarding terms, 44% said the limitations on coverage were about the same as in the first quarter of 2008, while 31% said terms were loosening, and 22% said terms were either tightening or tightening slightly.

More than half of the respondents reported submission activity increasing, with 32% reporting a slight increase and 22% reporting consistent increases. Only 23% reported declining submissions and 22% reported submissions were about the same as in the first quarter of 2008. Specialty lines where respondents reported seeing the greatest increase in submission activity in 2009 were Property, General Liability, Casualty, and Cat Exposed Property.

When asked what factors would have the potential to have the greatest impact on availability and pricing on specialty lines in the remainder of 2009, respondents most frequently cited the economy, catastrophic losses and declining capacity among carriers and reinsurers.

Respondents were also asked about pricing and retention level changes along 10 specialty lines of business: Property, Cat Exposed Property, Casualty, Professional Liability, D&O-Private, D&O-Public, Healthcare and Medical Malpractice, Excess & Umbrella, Environmental, and Transportation. Of the 10 areas, Cat Exposed property was the main area where respondents consistently saw increases in pricing while respondents saw decreases in Property, Casualty, Professional Liability, Excess and Umbrella, and Transportation.

While availability, terms, pricing, and submission activity were comparable to 2008, respondents reported decreased retention levels in many of the 10 specialty lines surveyed, led by Casualty, Property, Excess & Umbrella and Transportation. While significant decreases were reported along these lines, the majority of respondents reported retention levels were about the same along all lines.

Results are available on the website.

Webinar on State of Industry Set for June 11

2009-05-26T12:39:00.000-05:00

Industry leaders will review the state of the market for specialty insurance in light of a new survey conducted by NAPSLO. The special online live presentation is set for Thursday, June 11, at 11 a.m. EDT. The event is free, visit www.ambest.com/excess09 to register.

Participants in the one-hour discussion include:
--Paul Springman, President and Chief Operating Officer, Markel Corp.
--Marla Donovan, Vice President, Burns & Wilcox
--Kevin Westrope, President and CEO, Westrope
--Richard Kerr, Chairman and CEO, MarketScout Corporation
--A member of the A.M. Best Co.'s specialty lines rating group

The panel will examine today's market, including pricing and availability, for specialty insurance, known in various forms as surplus lines, excess & surplus or non-admitted coverage. They will also survey changes in the financial strength of the specialty insurance sector of the property/casualty industry. Specialty insurance includes coverages typically not available through standard commercial or personal insurance products. Best's Review, A.M. Best Co.'s monthly news magazine, will cover this topic in the September issue and will include content from the Webcast.

Topics to be covered in the panel discussion include:
--The state of insurance capacity and the availability of various lines of coverage
--How terms and limitations may be changing for various lines of specialty coverage
--How pricing, availability and retention experience have been affected for these lines of insurance coverage: property, catastrophe-exposed property, casualty, professional liability, directors and officers (both public and private), healthcare and medical liability, excess and umbrella, and environmental and transportation
--Financial strength of insurers serving the specialty lines industry

Registration for this event is free. Participants are encouraged to send in comments and questions for the discussion portion of the presentation. The Webcast will be available worldwide via a link provided upon registration.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

NAPSLO Applauds Introduction of Surplus Lines Bill in House

2009-05-21T16:26:00.000-05:00

NAPSLO applauded the introduction of the Non-Admitted and Reinsurance Reform Act of 2009 in the U.S. House of Representatives by Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-NJ), and indicated they hoped the bill would be introduced soon in the Senate.

“NAPSLO is pleased to see Rep. Moore and Garrett introduce the bill in the House and we look forward to working with them to get the bill passed,” said NAPSLO President John Wood. “We are also encouraged regarding prospects for the bill being introduced in the Senate shortly. Passage of this bill would help streamline and reduce barriers in state regulation of surplus lines insurance”

The NRRA is, in part, aimed at making access to the surplus lines market more efficient for consumers and the brokers and agents who assist them. In addition the bill could help standardize state regulations facing the industry.

Reps. Moore and Garrett, members of the House Committee on Financial Services, submitted the bill on Thursday. Senators Evan Bayh (D-IN) and Mel Martinez (R-FL), members of the Senate Committee on Banking, Housing and Urban Affairs, have also announced that they plan on introducing a version of the bill in the Senate.

“We believe that this legislation will bring efficiency and reduce the cost of regulatory compliance in surplus lines placements with multi-state exposures,” said NAPSLO Executive Director Richard Bouhan. “Consumers will benefit because the costs related to the inefficiencies and redundancies, which they bear, will be eliminated.”

The bill would establish national standards for how states regulate the surplus lines market and reinsurance and would create a uniform system of surplus lines premium tax allocation and remittance, one-state compliance on multi-state surplus lines risks, and direct access to the surplus lines market for sophisticated commercial purchasers. These are concepts long endorsed by NAPSLO and promoted with members of Congress during meetings over the past few years.

The House passed similar versions of the bill in the last two sessions of Congress and the Senate took up a similar bill in 2007 but no action was taken in the Senate prior to the end of the 110th Congress, requiring that the bill be reintroduced in the 111th Congress in order to be considered.

“Rep. Moore’s leadership has been important in getting the bill approved in the past two sessions and with the addition of Rep. Garrett as the lead Republican sponsor, we believe the prospects for passage are excellent,” said NAPSLO’s Washington D.C. representative, Maria Berthoud of B&D Consulting. “We are also encouraged by the interest in the bill by the Senate and are hopeful it will be passed in that chamber this year.”

NAPSLO Marketplace Survey Deadline Friday

2009-05-21T09:19:00.000-05:00

NAPSLO is currently conducting a survey amongst its members on current market conditions and the deadline to complete the survey is Friday, May 22.

The survey, conducted by the NAPSLO Communications & Technology Committee, gauges current conditions in the marketplace. The survey conclusions will be published on the NAPSLO website, distributed to the insurance trade press, and discussed at an A.M. Best/NAPSLO webinar tentatively scheduled for June 11.

NAPSLO members who have not completed the survey can click on the link below to access the survey.

Surplus Lines Marketplace Survey

ELANY Clarifies License Authority

2009-05-19T12:36:00.000-05:00

Resident surplus lines brokers in Missouri, Montana and Florida applying for an excess line broker license in New York will not receive full license authority to write business in New York state because those states do not issue an unlimited license for New York resident licenses, according to a recent bulletin from ELANY.

Under Bulletin 2009-10 released on May 11, ELANY reviewed the state’s position regarding reciprocity and the issuance of “full” or “limited” non-resident excess/surplus lines broker licenses. The bulletin said that brokers from Florida and Montana will receive a limited license, which permits them only to write purchasing group business in New York.

New York will issue an unlimited license for Missouri licenses for individuals, however corporate entities will receive the limited license. In addition, while not limiting what they can write, the state will require a bond for California and Washington resident brokers because those states require a bond for New York resident brokers

NAPSLO E&S School Sold Out

2009-05-13T14:24:00.000-05:00

The NAPSLO E&S School, set for June 23-26 a the Eric P. Newman Education Center in St. Louis, has sold out.

The NAPSLO Advanced School, designed for people with more than 5 years experience in the surplus lines industry, is set for Nov. 7-10 in St. Louis and registration forms will be sent in the summer.

Rhode Island Eliminates Surplus Lines Broker Affidavit Filings

2009-05-12T16:30:00.000-05:00

The Rhode Island Department of Business Regulation, Insurance Division, is reminding surplus lines brokers that Insurance Bulletin Number 2008-8 states that as of July 1, 2008, Rhode Island laws were amended to eliminate the filing of surplus lines affidavits.

The affidavits are still required to be executed by the insured and surplus lines broker – the change is only with regard to the filing of those affidavits with the Department. As a result the Department no longer accepts broker affidavits.

In lieu of the filing of affidavits, all surplus lines licensees must file a yearly report with the Department showing the business procured under the surplus lines license for the preceding calendar year.

Surplus Lines Brokers should use the form under Insurance Regulation 11, Exhibit C as a guide and add information such as the company name and contact information where appropriate. The first Surplus Lines Broker Annual Report filing is due April 1, 2010. There is no annual filing for 2009.

Surplus Lines Brokers who do not write any Rhode Island business in a calendar year are required to either complete the form included in Insurance Regulation 11, Exhibit C indicating that they are reporting zero premium or file a letter to that effect on letterhead.

E&S School Nearly Sold Out

2009-05-07T08:29:00.000-05:00

The NAPSLO E&S School, set for June 23-26 in St. Louis, is nearly sold out and only a few spaces remain.

The school is designed for insurance professionals with less than five years experience in the surplus lines industry. Persons with more than five years surplus lines experience are encouraged to attend the NAPSLO Advanced School, offered each Fall

The E&S school's curriculum will focus this year on five segments: Risk Takers-and various markets; Distribution System - purpose & variations; MGA's and Brokers-managing the business; Market Dynamics-changing environments; and Cops - regulatory agencies.

Registration materials are available to download from the NAPSLO website.

Rhode Island Requiring Companies to Provide Emergency Contact Information

2009-05-05T09:05:00.000-05:00

As part of developing an emergency adjuster access and coordination plan, the Rhode Island Department of Business Regulation, Insurance Division, has issued a bulletin requiring all Property & Casualty insurers (including surplus lines insurers) licensed or approved to do business in Rhode Island to immediately provide the Department with emergency contact information.

The department is requiring companies to designate a Primary Contact Person (“PCP”), and an Alternate Contact Person (“ACP”) in the event the PCP is not available, and provide contact information for the individuals. The contact person will serve as the primary conduit between the insurer, and the Department before, during and after a catastrophic event.

The Department said that the PCP and ACP should have the authority to provide assistance and information to the Department at all times during such event. Also included within the Plan is a Vehicle Identification Placard system that will allow vehicle access into disaster areas for vehicles carrying insurance company personnel and firms can order placards as part of registering.

The Department said it would make every effort to issue Bulletins before, during and/or after a disaster is declared in Rhode Island to offer guidance and assistance to the industry during such event. In the event of extended power outages, efforts to reach the PCP will be made via cellular phone.

The Department's liaison for catastrophic events in RI is Paula Pallozzi, Chief Property & Casualty Rate Analyst who may be reached at paula_pallozzi@dbr.state.ri.us or 401-462-9616.

Companies should visit the state's website to furnish emergency company contact information. Alien Surplus Line Insurers that do not have NAIC/FEIN numbers should contact Ms. Pallozzi directly. For more information about the information required, please download a copy of the bulletin.

Florida House, Senate Pass Bill to Remedy Zota Ruling

2009-05-01T22:56:00.000-05:00

The Florida House and Senate approved legislation this week clarifying the surplus lines industry's status regarding forms and policy regulation that was challenged by the Florida Supreme Court’s ruling in 2008 in Essex v. Zota.

The Florida House of Representatives passed legislation on Tuesday by a vote of 116-0 and the Senate passed it 38-0 on Friday. The bill now goes to the Governor for signature.

The bill restores the industry's exemption from regulation of surplus lines forms and policies that was put into question by the court ruling which said that surplus lines was only exempt from the rating section of Chapter 627 of Florida’s statute (Insurance Rates and Contracts) but was subject to the chapter’s other provisions.

The new legislation affirms the industry's regulatory exemption retroactive to Oct. 1, 1988, the date the court’s decision ruled previous legislation initiated the exemption of rate, but not form regulation.

"We are pleased to see that the Florida legislature has passed this bill and are hopeful that the Governor will sign the bill," said Executive Director Richard Bouhan. "Led by the work of the Florida Surplus Lines Association, the Florida Insurance Council, PCIAA, AIA, Lloyd's, NAPSLO and the Florida Surplus Lines Service Office this legislation affirms the industry’s freedom from regulation of rate and forms."

Florida House Passes Bill to Fix Zota Problem

2009-04-28T09:44:00.000-05:00

On a vote of 116-0 the Florida House of Representatives passed HB 853 this morning. The bill would clarify the surplus lines regulatory status in Florida put into question following the Florida Supreme Court's 2008 decision in Essex v. Zota.

A similar Senate bill (SB 1894) may be reviewed today by the Florida Senate.

Pennsylvania Considers Expanding Export List

2009-04-27T13:32:00.001-05:00

The Insurance Commissioner of Pennsylvania is soliciting comments regarding expanding the export list. The Commissioner proposes to amend the May 24, 2008, list to add the following:

• Animal rides
• Crane and rigging contractors (liability and physical damage only)
• Crop dusters (aircraft liability and aircraft hull coverage only)
• Fuel and explosive haulers (excess auto liability and auto physical damage only)
• Hazardous waste haulers (excess auto liability and auto physical damage only)
• Hazardous waste storage and disposal (liability only)
• Products liability (monoline) for the manufacturing of: Pharmaceuticals, Aircraft and component parts, Automotive and component parts, Farm and industrial equipment, Petrochemicals, Firearms, Medical equipment
• Products recall (monoline) for the manufacturing of: Pharmaceuticals, Aircraft and component parts, Automotive and component parts, Farm and industrial equipment, Petrochemicals, Firearms, Medical equipment

Persons wishing to comment on the Commissioner's proposal may submit a written statement by May 3, 2009. Each written statement must include sufficient detail and relevant facts to inform the Insurance Department of the exact basis of the statement.

Written statements should be directed to Cressinda Bybee, Office of Corporate and Financial Regulation, Insurance Department, 1345 Strawberry Square, Harrisburg, PA 17120, fax (717) 787-8557, cbybee@state.pa.us.

Formal notification of any changes will be published in the Pennsylvania Bulletin after the 15-day comment period ends on May 1, or a notice will be published stating that the May 24, 2008, list remains in effect.

Zota Fix Moves Forward in Florida

2009-04-22T15:50:00.000-05:00

Legislation to clarify the surplus lines regulatory status in Florida appears headed toward a full vote in the Florida House this week and the Florida Senate next week.

House and Senate committees acted favorably on bills that would restore the industry's exemption from state regulation of its forms and policies that was put in questions following the 2008 Florida Supreme Court's decision in Essex v. Zota.

The House bill (HB 853) and Senate bill (SB 1894) are now expected to be voted on by next week. While the bills would restore the industry's regulatory exemption retroactive to Oct. 1, 1988 some new requirements would be imposed, according to the Insurance Journal.